The State of Idaho offers various tax incentives and credits for businesses. Key highlights of the state program include:
- Tax Reimbursement Incentive (TRI)
- Workforce development training funds (WDTF): Businesses may be reimbursed up to $3,000 per new job for training costs. Each new job must pay at least $12 an hour, plus provide company paid benefits. WDTF also discussed above.
- 3% Tax Credit: Businesses that make qualifying new investments may earn a 3% income tax credit, which can offset up to 50% of a company’s state income tax liability and may be carried forward up to 14 years.
- New Jobs Income Tax Credit: Businesses may earn a 2-6% tax credit for each new employee for the first 12 months of employment. The employee must work full time for at least a 9 month period, earning $12-$15/hour (depending on unemployment rate in the area) with full company benefits.
- Industrial Revenue Bonds: Tax-free or taxable industrial revenue bonds are available for manufacturing, processing, production and assembly projects. Maximum amount is $20 million.
The state will provide detailed information about these and other state programs. A copy of the state incentives brochure can also be found by clicking below:
Local incentives are available for properties included in an Urban Renewal District (URD) that can provide the funding for public infrastructure needs. The amount of funds raised through the URD is dependent on the tax increment created at the district. In other words, the capital investment from the company and other capital investment within the URD after it is established determine the incremental increase in tax income that can be used for public infrastructure construction at the district. In a URD, the development funds generated is just under 2% of the companies M&E investment annually.
Tax abatement allows local county commissioners to exempt up to 100% of personal property from taxation for up to 5 years.
State and Local Tax Structure
Our personal, local, and state tax structures can also provide a company with competitive operations savings. In Idaho, the only local government taxes are property taxes (no local income tax, no local sales tax). Within Pocatello limits, improvements and machinery are taxed at the cumulative rate of 0.019930586, or just shy of 2%.